GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Nominal Price is the Absolute price of a Good / and is unadjusted for inflation
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1. True
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2. False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Nominal interest rates do not account for inflation while real interest rates do.
Detailed explanation-2: -It’s true that if you want to lower the relative price of a single good in the economy, you need policies that impact real variables. But inflation is a nominal phenomenon, and it requires nominal solutions.
There is 1 question to complete.